International Sanctions Act
Passed 20.02.2019
RT I, 19.03.2019, 11
Entry into force 01.01.2020
Amended by the following legal instruments (show)
| Passed | Published | Entry into force |
|---|---|---|
| 17.06.2020 | RT I, 10.07.2020, 1 | 20.07.2020, in part 01.01.2021; amended in part [RT I, 21.11.2020, 1] |
| 12.11.2020 | RT I, 21.11.2020, 1 | 01.01.2021, the words „financial intelligence unit“ and „Financial intelligence unit” have been replaced throughout the text with the words „Financial Intelligence Unit” in the respective case |
| 23.02.2022 | RT I, 08.03.2022, 1 | 15.03.2022, in part 15.05.2022 |
| 20.06.2023 | RT I, 30.06.2023, 1 | 01.07.2023 |
| 15.05.2024 | RT I, 07.06.2024, 1 | 17.06.2024, in part 17.12.2024 and 01.01.2025 |
Chapter 1 General provisions
§ 1. Scope of application of Act
This Act regulates the national implementation of international sanctions, the specifications for the implementation and application of financial sanctions, the procedure for monitoring the application of sanctions, the imposition of the sanctions of the Government of the Republic and the liability in the event of a violation of requirements arising from this Act.
[RT I, 07.06.2024, 1 – entry into force 17.06.2024]
§ 2. Application of other Acts
(1) The provisions of the Administrative Procedure Act apply to administrative proceedings prescribed in this Act, taking account of the specifications provided in this Act.
(2) The Money Laundering and Terrorist Financing Prevention Act is applied to matters not regulated in Chapters 2, 3 and 5 of this Act, including upon preparation and application of risk assessment, rules of procedure and internal control rules, and the application of due diligence measures, taking account of the specifications provided in this Act.
[RT I, 08.03.2022, 1 – entry into force 15.03.2022]
§ 21. Processing and storage of personal data upon implementation and application of international sanctions
(1) Personal data for the implementation and application of this Act, international sanctions and sanctions of the Government of the Republic may be processed only to the extent necessary to reflect and prove the facts taken into account upon implementation, application, non-implementation or non-application of international sanctions.
(2) The ministry or authority retains information, including personal information, collected based on this Act and upon implementation and application of international sanctions for a period of five years as of the date of the implementation or application of international sanctions, unless another period is prescribed in this Act or in other law. This subsection is not applied to the storage of personal data collected for other purposes provided in other legislation.
[RT I, 07.06.2024, 1 – entry into force 17.06.2024]
§ 22. Restriction of rights of data subject for implementing and applying international sanctions
(1) For the purpose of implementing and applying international sanctions and carrying out state supervision in the processing of personal data based on this Act, the ministry or authority may restrict the rights of the data subject, including the right to:
1) find out about the processing of their personal data, including about what personal data is being processed, as well as the purpose, legal basis, scope and reason for the processing;
2) find out whether their personal data are forwarded to a foreign state or an international organization;
3) find out whether the recipient of the personal data has been informed of the correction of their personal data;
4) object to the processing of their personal data;
5) find out about the personal data breach.
(2) Based on subsection 1 of this section, the rights of the data subject may be restricted in case non-restriction:
1) may adversely damage the ability of the processor or another obligated person to comply with the requirements of this Act, including the application of due diligence measures;
2) is necessary to protect the rights and freedoms of another person or data subject;
3) is necessary to ensure national security;
4) is necessary to achieve the objective of international sanctions or sanctions of the Government of the Republic.
(3) The ministry or authority may restrict the rights of a data subject listed in subsection 1 of this section by a legislative act imposing international sanctions, an administrative act designating the subjects of international sanctions, or by a competent authority until the granting of the authorisation specified in subsection 2 of § 11 of this Act, or until the termination of supervisory proceedings.
[RT I, 07.06.2024, 1 – entry into force 17.06.2024]
§ 3. International sanctions
(1) International sanctions are an essential tool of foreign policy aimed at supporting the maintenance or restoration of peace, international security, democracy and the rule of law, following human rights and international law or achieving other objectives of the United Nations Charter or the Common Foreign and Security Policy of the European Union.
(2) International sanctions are imposed with regard to a state, territory, territorial unit, regime, organization, association, group or person by a resolution of the United Nations Security Council, a decision of the Council of the European Union or any other legislation imposing obligations on Estonia.
(3) International sanctions may ban the entry of a subject of an international sanction in the state, restrict international trade and international transactions, and impose other prohibitions or obligations.
§ 4. Sanctions of the Government of the Republic
(1) The sanctions of the Government of the Republic is a tool of foreign policy which may be imposed in addition to the objectives specified in subsection 1 of § 3 of this Act in order to protect the security or interests of Estonia.
(2) The provisions on international sanctions are applied to the sanctions of the Government of the Republic taking account of the specifications specified in Chapter 4 of this Act.
[RT I, 07.06.2024, 1 – entry into force 17.06.2024]
§ 5. Subject of international sanctions
The subject of international sanctions is any natural or legal person, entity or body, designated in the legislation imposing or implementing international sanctionsspecified by a general identifier or a list, with regard to whom the international sanctions are applied.
[RT I, 07.06.2024, 1 – entry into force 17.06.2024]
§ 6. Violation of international sanctions
Violation of international sanctions is a failure to perform an obligation or violation of a prohibition provided in the legislation implementing international sanctions specified in § 9 of this Act.
§ 61. Limitation of liability
(1) A natural or legal person, entity or body is not held liable for applying international sanctions in case they acted in good faith. The application of international sanctions is in good faith in case the person, entity or body did not know and did not have to know that their action is not in compliance with the measures provided in the legislation imposing the international sanctions.
(2) A natural or legal person is not held liable for the obligation to maintain confidentiality imposed by an act or by a contract in case they comply with the obligation to provide information arising from this Act. Any agreement derogating from this provision is null and void.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
§ 7. Nullity of transaction violating international sanctions
(1) A transaction violating international sanctions is void.
(2) In case an authorization for entry into a transaction in accordance with subsection 2 of § 11 of this Act is granted retrospectively, the transaction becomes valid as of the date of the transaction.
§ 8. Provisional implementation and application of international sanctions
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
(1) International sanctions imposed by a resolution of the United Nations Security Council are implemented under the conditions laid down in the resolution with regard to the subjects of the international sanctions listed by the committee established on the basis of the resolution until the regulation of the Council of the European Union is updated or adopted.
[RT I, 08.03.2022, 1 – entry into force 15.03.2022]
(2) International sanctions imposed by a resolution of the United Nations Security Council must be immediately applied during the temporary implementation by all the natural and legal persons.
[RT I, 07.06.2024, 1 – entry into force 17.06.2024]
§ 81. Making proposals for designation of natural or legal person as subject of international sanctions and for removal from the list of subjects of sanctions
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
(1) The Ministry of Foreign Affairs submits, where necessary, a proposal to the committee established on the basis of a resolution of the United Nations Security Council or the Council of the European Union to designate a natural or legal person, entity or body as the subject of an international sanctions.
(2) The Ministry of Foreign Affairs submits, where necessary, a proposal to the committee established on the basis of a resolution of the United Nations Security Council or the Council of the European Union to remove a natural or legal person, entity or body that does not meet the conditions set out in the resolution or the decision of the Council of the European Union from the list of subjects of international sanctions.
(3) Before submitting the proposal, the Ministry of Foreign Affairs consults with security authorities and other relevant agencies, committees and authorities.
[RT I, 08.03.2022, 1 – entry into force 15.03.2022]
Chapter 2 National implementation of international sanctions
§ 9. Legal act implementing international sanctions
(1) For the purposes of this Act, legal act implementing international sanctions is a treaty, a regulation of the Council of the European Union or the act of law of the Republic of Estonia on the basis of which the obligations and prohibitions prescribed in the legislation on the imposition of international sanctions are applied.
(11) During the period of provisional implementation of international sanctions specified in § 8 of this Act, the legislation implementing international sanctions is a resolution of the Security Council of the United Nations.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
(2) In case it is not possible to apply international sanctions on the basis of the legislation specified in subsection 1 of this section, the Government of the Republic establishes, on the proposal of the Ministry of Foreign Affairs, an order or regulation implementing international sanctions to the extent necessary for national implementation of international sanctions.
§ 10. Obligations of ministries
(1) The national implementation of international sanctions is coordinated by the Ministry of Foreign Affairs that:
1) monitors the imposition, amendment and termination of international sanctions and informs the ministries, competent authorities and supervisory authorities responsible for the implementation thereof;
2) develops the Estonian sanctions policy in cooperation with other ministries and competent authorities;
3) organises the exchange of information related to the implementation of international sanctions with foreign states, European Union institutions and international organisations;
4) informs the public immediately about international sanctions through its web page and other information channels.
(2) Ministries in the area of government of the ministry established by the Government of the Republic Act:
1) initiate the legislation necessary for the implementation of international sanctions and provide explanations on such legislation;
2) ensure the conditions necessary for the application of international sanctions;
3) cooperate with the Ministry of Foreign Affairs for the proper implementation of the international sanctions;
4) make proposals to the Ministry of Foreign Affairs for the protection of the interests of Estonia upon imposition of international sanctions.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
§ 11. Obligations of competent authority
(1) The competent authority designated by an act or other legislation as responsible for the area responds to inquiries related to international sanctions and issues administrative acts and performs actions provided in the legislation on imposition or implementation of international sanctions.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
(2) In case the legal act implementing international sanctions enables making exemptions or allows provision of services or carrying out transactions or proceedings only on the basis of an authorization, the competent authority grants such authorization pursuant to the procedure provided in § 13 of this Act unless otherwise provided by sectoral legislation.
(21) The competent authority collects and submits data on the implementation of international sanctions in accordance with the procedure prescribed in the legislation imposing or implementing international sanctions.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
(3) Competent authorities include, among others:
1) in the case of an entry ban – the Ministry of the Interior or an agency in the area of government of the Ministry of the Interior authorized for such purpose;
2) in the case of the restrictions on the stay, residence and employment – the Police and Border Guard Board;
3) in the case of restrictions related to financial sanctions and public procurements – the Financial Intelligence Unit;
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
4) in the case of a ban on the import and export of goods – the Tax and Customs Board;
5) [Repealed - RT I, 07.06.2024, 1 - entry into force 17.06.2024]
6) in the case of a restriction relating to accounting, auditing, accountancy, tax consultancy, business consultancy, management consultancy, public relations, architectural, engineering, legal, tourism, media, information society and advertising services, market research and public opinion polling services, technical testing and analysis services and information technology consultancy services – Consumer Protection and Technical Regulatory Authority;
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
7) in the case of a restriction relating to a vessel, aircraft or motor vehicle – the Transport Board;
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
8) in the case of a ban on entry into the inland sea and port – the Defence Forces;
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
9) in the case of a prohibition related to the registration of a legal person and participation in a legal person – the registration department of Tartu County Court.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
(4) In case it is not possible to determine the competent authority on the basis of legislation, the ministry in charge of the policy sector proposes the assignment of the competent authority to the Ministry of Foreign Affairs and responds to appeals concerning international sanctions until the competent authority is assigned. The competent authority is assigned by order or regulation of the Government of the Republic on the proposal of the Ministry of Foreign Affairs.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
§ 111. Exchange of information between ministries and authorities
The ministry and the authority share immediately with other authorities concerned the information, including personal data and information with restricted access, of which they become aware in the course of the performance of their duties prescribed in this Act, which is necessary for the implementation and application of international sanctions and for the prevention and detection of infringements, taking account of the specifications of this Act. Access to information with restricted access is granted in accordance with the procedure provided in the act.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
§ 12. Specifications applicable to authorisation for carriage of goods
(1) The provisions of the Strategic Goods Act concerning licenses apply to the authorisation for carriage of goods, which is issued on the basis of subsection 2 of § 11 of this Act by the Strategic Goods Commission specified in § 8 of the Strategic Goods Act.
(2) A state fee for the review of an application for the authorisation for carriage of goods specified in subsection 1 of this section is paid at the rate provided by the State Fees Act.
§ 13. Application for, granting and refusal of authorisation and mandatory nature of authorisation
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
(1) An application is submitted to the competent authority for the grant of exemption or issue of authorisation specified in subsection 2 of § 11 of this Act.
(2) The competent authority grants the authorisation specified in subsection 2 of § 11 of this Act or refuses to grant the authorisation within 30 days as of the submission of the application. The time limit for resolution of the application starts to run as of the date of submission of all the required documents and data. The competent authority may, in justified cases, extend the time limit for processing the application by up to 60 days. The extension of the time limit is notified in writing to the applicant. The grant of the authorisation is coordinated with the Ministry of Foreign Affairs.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
(3) The competent authority gives priority to the processing of an application for the granting of authorisation for provision of humanitarian aid.
(4) The granting of authorisation is based on the terms and conditions provided by the legislation on imposition or implementation of international sanctions.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
(41) The competent authority refuses to grant an authorisation in case the granting of the authorisation is in conflict with the terms and conditions of the legislation on establishing or implementing international sanctions or in case the Ministry of Foreign Affairs does not coordinate the granting of the authorisation.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
(5) An authorization is not transferable unless otherwise provided in the authorization.
(6) The minister in charge of the policy sector may, by a regulation, establish the form of an application for making an exemption or granting the authorisation specified in subsection 2 of § 11 of this Act.
(7) A natural or legal person to whom an authorisation has been granted by a competent authority to provide a service or with whom to carry out a transaction or action, is required to comply with the terms and conditions provided in the authorisation upon providing the service or carrying out the transaction or action.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
§ 131. Obligations of chief processor and authorised processor of database belonging to the State Information System
(1) The chief processor or authorised processor of a database belonging to the State Information System (hereinafter registrar) refuses to make an entry violating international sanctions.
(2) The obligation specified in subsection 1 of this section is performed by the registrars of the following databases belonging to the State Information System:
1) register of European patents valid in Estonia;
2) register of utility models;
3) register of trade and service marks;
4) land register;
5) register of ships;
6) the first register of bareboat chartered ships;
7) the second register of bareboat chartered ships;
8) database of beneficial owners;
9) register of non-profit organisations and foundations;
10) patent register;
11) national traffic register;
12) register of industrial designs;
13) Estonian register of securities;
14) aircraft register;
15) commercial register;
16) register of microcircuit topologies;
17) national register of geographical indications;
18) plant variety register.
(3) The registrar notifies the competent authority of the identification of the subject of international sanctions or of a service, transaction or act that violates international sanctions. The information transmitted may include personal data.
(4) The Registrar assigns the person who, within the scope of their competence, organises the implementation of international sanctions and forwards their contact details to the competent authority specified in subsection 3 of § 11 of this Act.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
§ 132. Obligations of legal representative
The legal representative of a natural or legal person is required to arrange the performance of the obligation or the observance of the prohibition provided in the legislation implementing international sanctions of the represented person.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
§ 133. Notification of violation of an international sanction
A credit institution is required to notify the Tax and Customs Board of any suspicion or threat of a violation of the ban on import or export of goods imposed by international sanctions, and the Consumer Protection and Technical Regulatory Authority of any suspicion or threat of a violation of international sanctions related to a service, and to forward any data, including personal data, of which they have become aware to the specified authorities, as well as to respond to requests from the specified authorities.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
Chapter 3 Specifications for implementation and application of financial sanctions
[RT I, 08.03.2022, 1 - entry into force 15.03.2022]
§ 14. Financial sanctions
For the purposes of this Act, financial sanctions are international sanctions which:
1) obligate the freezing of funds and economic resources of the subject of international financial sanctions designated by the list;
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2) prohibit the making available of financial and economic resources to the subject of the financial sanctions designated by the list;
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21) prohibit the financing of goods or services prohibited under the conditions provided in the legislation implementing international sanctions;
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3) prohibit the granting of loans and credit under the conditions prescribed by the legislation on implementation of international sanctions;
4) prohibit the opening and use of a deposit, payment, securities or other account under the conditions prescribed by the legislation on implementation of international sanctions;
5) prohibit the securities transactions under the conditions provided in the legislation on implementation of international sanctions;
6) prohibit the conclusion of an insurance contract under the conditions prescribed by the legislation on implementation of international sanctions;
7) prohibit investing under the conditions prescribed by the legislation on implementation of international sanctions; or
8) prohibit, under the conditions provided by the legislation on implementation of international sanctions, the starting or continuing of business relationships, consultancy or the provision of other financial services related to the activities listed above.
(2) The subject of international financial sanctions designated by the list specified in clauses 1 and 2 of subsections 1 of this section is:
1) a natural or legal person, entity or body designated by name in the legislation/instrument imposing or implementing international sanctions and subject to an obligation to freeze funds and economic resources;
2) a natural or legal person, entity or body related to a person specified in clause 1 of this subsection, and to whom, because of that relation, the freezing of funds and economic resources is applied in the cases and under the conditions specified in the legislation imposing or implementing international sanctions.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
§ 15. Obligation to freeze in case of joint ownership
(1) In case the legislation on implementation of financial sanctions requires the freezing of funds and economic resources of a subject of financial sanctions, the financial sanctions are applied also in the case the funds and resources are jointly owned by several persons and at least one of them is a subject of financial sanctions.
(2) A person who is not a subject of financial sanctions, but whose funds and economic resources have been frozen pursuant to subsection 1 of this section, may apply for authorisation from the Financial Intelligence Unit to use their share in the joint ownership.
§ 16. Overview of financial sanctions
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
(1) [Repealed - RT I, 07.06.2024, 1 - entry into force 17.06.2024]
(2) The Financial Intelligence Unit prepares and publishes, at least once a year, a consolidated overview of the implementation of financial sanctions in Estonia.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
§ 17. Rights of person in case financial sanctions have been applied to them or transactions related to them
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A person in respect of whom or of a transaction related to whom have been applied financial sanctions has the right to submit a request to the Financial Intelligence Unit to verify whether the application of sanctions has been lawful.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
§ 18. Inspection obligation of Financial Intelligence Unit
(1) Upon receipt of an application specified in § 17 of this Act or a notice pursuant to subsection 3 of § 19 and subsection 1 and 4 of § 21 of this Act, the Financial Intelligence Unit, within ten working days:
1) verifies whether the person who has submitted the application or has been identified is a subject of financial sanctions or whether the transaction of the person is related to the subject of financial sanctions;
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
2) verify whether it is a transaction or act violating financial sanctions;
3) verify whether the financial sanctions have been applied lawfully;
4) [Repealed – RT I, 08.03.2022, 1 – entry into force 15.03.2022]
(2) In justified cases, the Financial Intelligence Unit may extend the term provided in subsection 1 of this section until up to 60 days where it is necessary for the inspection specified in subsection 1 of this section or where the need for an additional term arises from a third party. The Financial Intelligence Unit submits an explanation regarding the extension of the term to the submitter of the application or notice at the latest two working days before the expiry of the term provided in subsection 1 of this section.
(3) The Financial Intelligence Unit notifies the submitter of the application or notice of the results of the inspection specified in subsection 1 of this section within two working days.
(4) Where the Financial Intelligence Unit confirms that it is a subject of a financial sanction or a transaction or act violating a financial sanction or the financial sanction has been lawfully applied, and a person with regard to whom a financial sanction is applied has submitted an application specified in § 17 of this Act to the Financial Intelligence Unit, the Financial Intelligence Unit also notifies, in writing within two working days, the subject of the financial sanction or the person concerned of the results of the inspection specified in subsection 1 of this section and of the following in respect of the measures taken with regard to them:
1) the exact scope and content;
2) the legal basis;
3) the date of commencement;
4) the procedure for contestation;
5) the bases and procedure for making exceptions.
[RT I, 08.03.2022, 1 – entry into force 15.03.2022]
§ 19. Obtaining additional information and notification obligation
(1) A natural or legal person, who has established that a person who has or is planning to have a business relationship with them is a subject of financial sanctions, or a transaction or act intended or carried out by that person violates financial sanctions, applies financial sanctions and notifies the Financial Intelligence Unit immediately thereof.
(2) A natural or legal person who has doubts as to whether a person who has or is planning to have a business relationship with them is a subject of financial sanctions, or the transaction or act intended or carried out by that person violates financial sanctions, applies financial sanctions and obtains additional information concerning the circumstances which enable to establish whether the transaction or act intended or carried out is in breach of financial sanctions.
(3) Where, on the basis of additional information, a natural or legal person identifies a subject of financial sanctions, or that a transaction or act intended or carried out by the person violates financial sanctions or additional information does not enable identification thereof, the person applies financial sanctions and immediately notifies the Financial Intelligence Unit thereof.
§ 191. Measures to ensure application of financial sanctions
(1) Where the Estonian Tax and Customs Board suspects that goods under customs supervision for the purposes of clause 27 of Article 5 of Regulation (EU) No 952/2013 of the European Parliament and of the Council laying down the Union Customs Code (OJ L 269, 10.10.2013, pp 1–101) are to be applied a financial sanction specified in subsections clauses 1 and 2 of subsection 1 of § 14 of this Act, the Estonian Tax and Customs Board submits a notification specified in § 19 of this Act to the Financial Intelligence Unit. Submission of the notification to the Financial Intelligence Unit by the Estonian Tax and Customs Board does not replace the notification obligation of a natural or legal person provided in § 19 of this Act.
(2) Pending the results of the inspection specified in § 18 of this Act, the Tax and Customs Board may detain the goods specified in subsection 1 of this section in order to ensure the imposition of a financial sanction.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
§ 20. Person with special obligations
(1) A person with special obligations is:
1) a credit institution for the purposes of the Money Laundering and Terrorist Financing Prevention Act;
2) a financial institution for the purposes of the Money Laundering and Terrorist Financing Prevention Act, except the European Central Bank and the central banks of the Contracting States of the European Economic Area;
3) a provider of virtual currency service for the purposes of the Money Laundering and Terrorist Financing Prevention Act;
[RT I, 10.07.2020, 1 – entry into force 20.07.2020]
4) a person with the status of an account operator for the purposes of the Securities Register Maintenance Act and the Central Securities Depository in case the person arranges for the opening of securities accounts and provides services related to registry operations without intermediation of an account operator;
5) a branch of a service provider of a foreign state entered in the Estonian commercial register providing the same type of service as the agencies specified in clauses 1–4 of this subsection.
6) an organiser of gambling, other than a commercial lottery, for the purposes of the Money Laundering and Terrorist Financing Prevention Act;
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7) an intermediary in the purchase and wholesale of immovable property for the purposes of the Money Laundering and Terrorist Financing Prevention Act;
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8) a person engaged in buying-in or wholesale of precious metal, precious metal articles, except precious metals and precious metal articles used for manufacturing, scientific and medical purposes, or precious stones for the purposes of the Money Laundering and Terrorist Financing Prevention Act;
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9) a sworn auditor upon provision of auditing services and a provider of accounting services for the purposes of the Money Laundering and Terrorist Financing Prevention Act;
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10) a provider of advisory services in the field of accounting or taxation for the purposes of the Money Laundering and Terrorist Financing Prevention Act;
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11) a provider of trust and company services for the purposes of the Money Laundering and Terrorist Financing Prevention Act;
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12) a notary, attorney, enforcement agent, bankruptcy trustee, interim trustee in bankruptcy and a provider of other legal services in an economic, professional or occupational activity, where the person acts in the name and on behalf of their client in a financial or real estate transaction for the purposes of the Money Laundering and Terrorist Financing Prevention Act.
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(2) In case a person with special obligations has more than one member of the management board, the person with special obligations appoints a member of the management board who is responsible for the compliance of the person with special obligations with the obligations provided in §§ 21˗23 of this Act and for the performance of the legislation and instructions established on the basis of this Act.
[RT I, 08.03.2022, 1 – entry into force 15.03.2022]
(3) A person with special obligations appoints a person in charge of performing the tasks provided by this Act, including a person who is responsible for the application of financial sanctions, and forwards the contact data of the person to the Financial Intelligence Unit and Financial Supervision Authority. The provisions of § 17 of the Money Laundering and Terrorist Financing Prevention Act concerning the contact person apply to the responsible person, taking into account the specifications provided in this Act.
[RT I, 08.03.2022, 1 – entry into force 15.03.2022]
(4) A member of the management board or the head of branch of a person with special obligations is responsible for the appointment of a responsible member of the management board and the responsible person specified in subsections 2 and 3 of this section.
[RT I, 08.03.2022, 1 – entry into force 15.03.2022]
§ 21. Obligations of person with special obligations
(1) Upon the entry into force, amendment or termination of financial sanctions, a person with special obligations verifies whether the person who has or is planning to have a business relationship with them is a subject of financial sanctions. In case the person with special obligations identifies a person, who is a subject of financial sanctions or that the transaction or act intended or carried out by them is in breach of financial sanctions, the person with special obligations applies financial sanctions and immediately informs the Financial Intelligence Unit thereof.
(11) In order to identify a subject of the financial sanction and apply financial sanctions, a person with special obligations applies due diligence measures provided in clauses 1–4 of subsection 1 of § 20 of the Money Laundering and Terrorist Financing Prevention Act upon establishing business relationships and in the course of the business relationship, monitors the business relationship specified in clause 6 of the same subsection, taking into account the risks inherent in their activities and the international sanction.
[RT I, 08.03.2022, 1 – entry into force 15.03.2022]
(12) Upon entry into force, amendment or expiry of a financial sanction, a person with special obligations immediately updates the lists of subjects of international sanctions used by them.
[RT I, 08.03.2022, 1 – entry into force 15.03.2022]
(2) Where a person with special obligations has doubts whether a person who has or is planning to have a business relationship with them is a subject of financial sanctions or that a transaction or act which is planned or carried out by them violates financial sanctions, the person with special obligations applies financial sanctions and the due diligence measures as follows:
1) collects additional information as to whether the person who has or intends to have the business relationship with them is a subject of financial sanctions or whether a transaction or act which is planned or carried out is in breach of financial sanctions and verifies it on the basis of supporting documents, data or information from a reliable and independent source;
2) collects additional information regarding the purpose and nature of the business relationship, transaction or act and verifies it on the basis of additional documents, data or information from a reliable and independent source.
(3) A person with special obligations also applies due diligence measures provided in subsection 2 of this section in the event of a risk or suspicion of a breach of a financial sanction.
(4) Where, as a result of application of due diligence measures specified in subsection 2 of this section, the person with special obligations identifies a subject of the financial sanction or that the transaction or act which is planned or carried out by them violates financial sanctions, or where additional information obtained upon application of due diligence measures does not enable to identify it, as well as in the case of the suspicion of violation of financial sanction specified in subsection 3 of this section, the person with special obligations informs the Financial Intelligence Unit thereof and of the financial sanction applied.
(5) The form of the notice to be submitted to the Financial Intelligence Unit for compliance with the notification obligation based on subsections 1 and 4 of this section and the instruction for performance thereof are established by a regulation of the minister in charge of the policy sector.
§ 22. Collection and storage of data
(1) A person with special obligations collects and store data collected upon compliance with the requirements established in § 21 of this Act or on the suspicion or threat of violation of an international sanction related to goods or services within five years as of the termination of the business relationship. The obligation to retain the data for the specified period applies also in case the transaction is not concluded as of the date of receipt of the data.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
(2) The stored data must enable an exhaustive and immediate response to inquiries of the Financial Intelligence Unit or, in accordance with legislation, to inquiries of other supervisory authorities, investigative bodies or courts, including whether the person with special obligations has or has had a business relationship with the person specified in the inquiry and what is or was the nature of the relationship or whether the service was provided to the person specified in the inquiry.
(3) Where investigation or court proceeding have been initiated in connection with a violation of a financial sanction or the financial sanction has been applied for the period longer than five years, the term provided in subsection 1 of this section is extended until the investigation, court proceeding or financial sanction is terminated.
(4) A person with special obligations is permitted to process personal data collected upon application of this Act only for the purpose of applying an international sanction which is considered a matter of public interest under Regulation (EU) 2016/679 of the European Parliament and of the Council on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation) (OJ L 119, 04.05.2016, pp 1–88) and such data may not be further processed in a way which is incompatible with that purpose, such as for marketing purposes.
[RT I, 08.03.2022, 1 – entry into force 15.03.2022]
§ 221. Risk mitigation and risk management system of international sanction
(1) The risk mitigation and risk management system of an international sanction is a set of documents and activities described therein and information technology tools aimed at ensuring the application of an international sanction, allocating appropriate resources and training personnel in order to prevent violation or circumvention of an international sanction.
(2) On the basis of risk appetite and risk assessment, a person with special obligations creates their risk mitigation and risk management system of international sanction, documents and updates the system and its components and takes account of them upon performing the functions provided in this Act.
(3) The risk mitigation and risk management system of an international sanction contains at least the following components:
1) the general strategy for risk mitigation and risk management;
2) determining and updating risk appetite and risk assessment;
3) establishing and updating the rules of procedure and instructions;
4) the procedure for application of due diligence measures, their scope and implementation;
5) operating in the situations specified in subsections 1–4 of § 21 of this Act;
6) collecting and storing data;
7) carrying out internal control;
8) training employees.
(4) A person with special obligations must provide training for employees whose duties include the establishment of business relationships or the making of transactions on the performance of obligations arising from this Act. Training takes place upon commencement of work by the employee and regularly thereafter or as necessary. The training includes at least the information which deals with the risk assessment of international sanction and its results, the obligations prescribed in legislation and the rules of procedure, the typology of breaches of the international sanction, state-of-the-art methods of circumventing international sanctions and the risks involved, as well as personal data protection requirements.
[RT I, 08.03.2022, 1 – entry into force 15.03.2022]
§ 23. Rules of procedure and internal control rules
(1) A person with special obligations establishes rules of procedure in writing or in a form which can be reproduced in writing that ensure the organizational structure enabling immediate identification of the entry into force, modification or termination of financial sanctions, and which include instructions at least on:
1) how to identify a subject of financial sanctions and the transaction or act violating financial sanctions;
2) how to act in the event of suspicion concerning identification of a subject of financial sanctions or a transaction or act violating financial sanctions;
3) how to identify the risk of a breach of financial sanctions and the action to be taken in the event of such a finding;
4) how to apply due diligence measures on the basis of this Act;
[RT I, 08.03.2022, 1 – entry into force 15.03.2022]
5) how to comply with the notification obligation provided in subsections 1 and 4 of § 21 of this Act;
6) how to store data provided in § 22 of this Act and to make this data available.
(2) In order to verify compliance with the rules of procedure, the person with special obligations establishes internal control rules, which describe, among other, the frequency and procedure of internal control and the procedure for storing the results.
(3) A person with special obligations arranges adherence to and implementation of the rules of procedure and internal control rules by the members of the staff of the person with special obligations.
(4) The minister in charge of the policy sector may establish by a regulation more detailed requirements concerning the rules of procedure of credit and financial institutions, internal control rules and the implementation thereof.
[RT I, 08.03.2022, 1 – entry into force 15.03.2022]
§ 24. Obligations of legal service providers
(1) Subsections 1, 1¹ and 2–4 of § 21 of this Act apply to notaries, attorneys, enforcement agents, interim trustees in bankruptcy and providers of other legal service where they are acting as representatives of their client in a financial or immovable property transaction on behalf of and at the expense of the client, instructing the planning or implementation of the transaction or carrying out a professional act which is related to:
[RT I, 08.03.2022, 1 – entry into force 15.03.2022]
1) the purchase or sale of immovable or a business or shares or stocks of a company;
2) the management of money, securities or other assets of a client;
3) the opening or management of payment, savings or securities accounts;
4) the acquisition of funds necessary for foundation, operation or management of a company or
5) foundation, operation or management of a company, foundation, trust or legal arrangement.
[RT I, 10.07.2020, 1 – entry into force 20.07.2020]
(2) The obligation to notify provided in subsections 1 and 4 of § 21 of this Act does not apply to a provider of legal service in case the provider assesses the legal situation of the client, defends or represents the client in court, challenge or other such proceedings, including advising the client on commencement of proceedings or prevention thereof regardless of whether the information was received before, in the course of or after the proceedings.
§ 25. Obligations of registrar
[Repealed - RT I, 07.06.2024, 1 - entry into force 17.06.2024]
§ 26. Release from liability
[Repealed - RT I, 07.06.2024, 1 - entry into force 17.06.2024]
Chapter 4 Sanctions of Government of Republic
§ 27. Imposition of sanctions of Government of Republic
(1) The sanctions of the Government of the Republic are imposed by a regulation of the Government of the Republic.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
(11) The Ministry of Foreign Affairs proposes the imposition of sanctions to the Government of the Republic on the initiative of the Ministry in charge of the policy sector.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
(12) A regulation of the Government of the Republic specified in subsection 1 of this section enters into force on the day following the day of its publication in accordance with the procedure in force, unless a later deadline is provided in the regulation itself.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
(13) The ministry in charge of the policy sector that initiated the sanctions of the Government of the Republic provides explanations on the sanction.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
(2) The subjects of the sanctions of the Government of the Republic are designated by the directive of the minister in charge of the policy sector in case designation of the subjects of the sanction by a list is prescribed in the regulation of the Government of the Republic.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
(3) The provisions of the Administrative Procedure Act are not applied to the designation of the subjects of the sanctions of the Government of the Republic.
(4) The addition of a subject of the sanction to the list and removal from the list is deemed to have been notified upon the publication of the relevant information on the website of the Ministry of Foreign Affairs. In the event of an entry ban, the addition to and removal from the list of the subject of the sanction is deemed to have been notified upon the publication of the name of the subject of the sanction and, where it is known, the date of birth on the website of the Ministry of the Interior.
[RT I, 08.03.2022, 1 – entry into force 15.03.2022]
(5) [RT I, 07.06.2024, 1 - entry into force 17.06.2024]
(6) A competent authority may cooperate internationally with a competent authority of a foreign state to implement a sanction of the Government of the Republic.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
§ 28. Rights of subject of Government of Republic sanctions designated by list
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
(1) The subject of the sanctions of the Government of the Republic designated by the list may submit an inquiry to the Ministry of Foreign Affairs as to the reasons for designation as the subject of the sanction.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
(2) The subject of the sanctions of the Government of the Republic designated by the list may submit a reasoned application together with evidence to the Ministry of Foreign Affairs for removal from the list of subjects of sanction.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
(3) The Ministry of Foreign Affairs responds to the inquiry specified in subsection 1 of this section and the application specified in subsection 2 within thirty days.
(4) A person who is the subject of the sanctions of the Government of the Republic designated by the list may file an appeal regarding the designation of them as the subject of sanction with an administrative court pursuant to the procedure provided by the Code of Administrative Court Procedure.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
§ 29. Validity and review of sanctions of Government of Republic
(1) The sanctions of the Government of the Republic are valid until the term designated in the regulation established on the basis of subsection 1 of § 27 of this Act or for an unspecified term.
(2) In case the sanctions of the Government of the Republic are in force for more than one year, they are regularly reviewed.
(3) The minister in charge of the policy sector may suspend the validity of sanctions of the Government of the Republic with regard to a subject of the sanction on the basis of a reasoned request of the subject of the sanction or on the reasoned proposal of a governmental authority or a state agency administered by the governmental authority or on their own initiative for a specified term.
(4) A governmental authority, a state agency administered by a governmental authority, or a court may make a reasoned proposal to the Ministry of Foreign Affairs to remove the subject of the sanctions of the Government of the Republic from the list.
(5) Subsections 3 and 4 of this section are not applied in case the subjects of the sanction of the Government of the Republic are not specified in the list.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
Chapter 41 Using assets of subject of international sanctions as prepayment of compensation for damage
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
§ 291. Using the assets of a subject of international sanctions as prepayment of compensation for damage
(1) The Ministry of Foreign Affairs may, taking into account the purposes established in subsection 1 of § 3 of this Act, decide to use the funds or other assets of a subject of international sanctions (hereinafter the assets) as prepayment of the compensation for the damage caused to a foreign state in case the damage has been caused by a violation of the prohibition on the use of armed force arising from subsection 4 of Article 2 of the Charter of the United Nations or a violation of the rules of warfare during the unlawful use of armed forces (hereinafter the unlawful act).
(2) The prerequisites for using the assets are damage caused by the commission of the unlawful act, a claim for compensation for damage submitted by the affected foreign state to the foreign state which caused the damage, a partial or full failure by the state which caused the damage to satisfy the claim within a reasonable period of time, and a request by the affected foreign state, an international organisation, or an internationally acknowledged compensation mechanism related to the claim to use the assets of a subject of international sanctions as prepayment of compensation for damage.
(3) The measure may be applied in respect of the following persons of a foreign state who have caused damage by their unlawful act and received a claim for compensation of damage:
1) an entity or a legal person established in this state that is under the control of the respective state or of which more than 50% is owned by that state and which has financially or materially supported the commission of the unlawful act;
2) a natural or legal person whose connection to the commission of an unlawful act or contributing to such act has been identified and proven sufficiently.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
§ 292. Deciding on use of assets as prepayment of compensation for damage
(1) In order to use assets as prepayment of compensation for damage, the Ministry of Foreign Affairs conducts administrative proceedings and establishes the following circumstances for the purposes of meeting the prerequisites provided in § 291 of this Act:
1) unlawful act has caused damage, which has been proven and which must be compensated for pursuant to international law;
2) the affected foreign state has submitted a claim for compensation of damage to the foreign state that caused the damage, and the claim has not been satisfied by the foreign state that caused the damage within a reasonable period of time;
3) the affected foreign state, an international organisation, or an internationally acknowledged compensation mechanism related to the claim has submitted a request to the Estonian state to use the assets of the subject of international sanctions as prepayment of compensation for damage, and the terms and conditions for using the assets as prepayment of compensation for damage and assignment of the right of claim to the owner of the assets, provided in § 294 of this Act, have been agreed upon;
4) the connection of the entity or person referred to in clause 1 of subsection 3 of § 291 of this Act with the foreign state that caused the damage and the commission of the unlawful act, and the connection of the natural or legal person referred to in clause 2 of subsection 3 of § 291 of this Act with the commission of or aiding the commission of the unlawful act described in that subsection;
5) the assets to be used as prepayment of compensation for damage belong to the person specified in subsection 3 of § 291 of this Act;
6) there are no exceptional circumstances due to which the interests of the person would outweigh the need to implement the measure.
(2) The person whose assets are to be used as prepayment of compensation for damage is informed of the opening of the administrative procedure by electronic means, by mail or by other means. Where it is not possible to inform the person by electronic means, by mail or by other means, the Ministry of Foreign Affairs publishes a notification on initiating administrative proceedings in at least one national newspaper and the official publication Ametlikud Teadaanded within ten days as of the initiation of the procedure.
(3) The decision of the Ministry of Foreign Affairs to use assets as prepayment of compensation for damage must contain the following data and circumstances:
1) the name, personal identification code or, in the absence thereof, date and year of birth, known residence or seat, and address of the owner of the assets to be used as prepayment of compensation for damage;
2) information about the assets to be used as prepayment of compensation for damage, including the description, location and value of the assets;
3) explanations about the occurrence of the circumstances provided in subsection 1 of this section and the justifications for using the assets as prepayment of compensation for damage;
4) confirmation about the right of claim of compensation.
(4) The person in respect of whose assets a decision on using the assets as prepayment of compensation for damage has been made is delivered the decision specified in subsection 3 of this section by electronic means, by mail or by other means. In case it is not possible to deliver the decision by electronic means, by mail or by other means, the Ministry of Foreign Affairs publishes the operative part of the decision in at least one national newspaper and the official publication Ametlikud Teadaanded.
(5) In case the person whose assets are used as prepayment of compensation for damage based on a decision of the Ministry of Foreign Affairs contests the decision in the administrative court, the validity of the decision is suspended for the duration of court proceedings.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
§ 293. Management and sale of assets used as prepayment of compensation for damage
(1) The Ministry of Foreign Affairs organises the possession of the funds until the funds are handed over to the affected foreign state, an international organisation, or an internationally acknowledged compensation mechanism related to the claim. Other assets are sold by an enforcement agent on the basis of an order of the Ministry of Foreign Affairs at a public auction, by another method or under supervision of the enforcement agent in accordance with the procedure provided in the Code of Enforcement Procedure. The decision of the Ministry of Foreign Affairs to use the assets as prepayment of compensation for damage is an enforcement instrument for the purposes of clause 21 of subsection 1 of § 2 of the Code of Enforcement Procedure.
(2) The assets are assessed by an enforcement agent on the basis of the usual value of such assets. In case the enforcement agent is unable to determine the price of the assets, the enforcement agent commissions an expert to assess the assets.
(3) The costs of storage of the assets and the enforcement expenses are deducted from the proceeds from the sale of the assets, and the remaining amount is handed over to the affected foreign state, an international organisation, or an internationally acknowledged compensation mechanism. All expenses incurred by the Estonia state for the preservation of the assets are deemed to be costs of storage of the assets.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
§ 294. Transfer of right of claim
(1) The person specified in subsection 3 of § 291 of this Act whose assets have been used as prepayment of compensation for damage, acquires a freely transferable and inheritable right of claim in the amount of the value of the assets used for compensation for damage in respect of the compensation owed to the affected foreign state by the foreign state that caused damage by their unlawful act.
(2) The terms and conditions for using the right of claim are agreed upon in a treaty between the Republic of Estonia and the affected foreign state, an international organisation, or an internationally acknowledged compensation mechanism related to the claim.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
Chapter 5 Organization of supervision
§ 30. Supervisory authorities
(1) The Financial Intelligence Unit exercises state supervision over the compliance with the legislation establishing and implementing financial sanctions and with the requirements of this Act and legislation established on the basis thereof by a person with special obligations, unless otherwise provided by law.
[RT I, 07.06.2024, 1 - entry into 17.06.2024]
(11) The Financial Supervision Authority exercises supervision over the compliance with the requirements of this Act and legislation established on the basis thereof by credit institutions and financial institutions over which it exercises supervision on the basis of the Financial Supervision Authority Act, taking into account the specifications provided in this Act.
[RT I, 08.03.2022, 1 – entry into force 15.03.2022]
(2) Supervision over the compliance with the requirements of the legislation establishing and implementing international sanctions and the requirements of this Act and the legislation established on the basis thereof by the registrars of the databases specified in clauses in clauses 1–3, 6,7 and 10–18 of subsection 2 of § 131 of this Act is exercised in accordance with the internal oversight procedure.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
(3) Supervision over the compliance with the requirements of the legislation establishing and implementing international sanctions and the requirements of this Act and the legislation established on the basis thereof by the registrars of the databases specified in clauses in clauses 4, 5, 8, 9 and 15 of subsection 2 of § 131 of this Act is exercised in accordance with the procedure provided in § 45 of the Courts Act.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
(4) The management board of the Estonian Bar Association exercises supervision over the compliance with the requirements of this Act and legislation established on the basis thereof by the members of the Estonian Bar Association pursuant to the Bar Association Act, taking account of the provisions of this Act.
(5) The Ministry of Justice exercises supervision over the compliance with the requirements of this Act and legislation established on the basis thereof by notaries on the basis of the Notaries Act, taking account of the provisions of this Act. The Ministry of Justice may delegate supervision to the Chamber of Notaries.
(6) The Consumer Protection and Technical Regulatory Authority exercises state supervision over the compliance with the requirements of the legislation establishing and implementing international sanctions regulating the services specified in clause 6 of subsection 3 of § 11 of this Act and the legislation established on the basis of this Act in accordance with the procedure provided in this Act.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
(7) The Transport Board exercises state supervision over the compliance with the requirements of the legislation establishing and implementing international sanctions regulating the restrictions specified in clause 7 of subsection 3 of § 11 of this Act and the legislation established on the basis of this Act in accordance with the procedure provided in this Act.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
(8) The Estonian Tax and Customs Board exercises state supervision over the compliance with the requirements of the legislation establishing and implementing international sanctions regulating the cases specified in clause 4 of subsection 3 of § 11 of this Act and the legislation established on the basis of this Act in accordance with the procedure provided in this Act, the Customs Act and the legislation of the European Union specified in subsection 4 of § 1 of the Customs Act.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
(9) The Defence Forces exercise state supervision over the compliance with the requirements of the legislation establishing and implementing international sanctions regulating the restrictions specified in clause 8 of subsection 3 of § 11 of this Act and of the legislation established on the basis of this Act, and in accordance with the bases and procedure provided in the State Borders Act.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
§ 31. Special measures and specifications of state supervision
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
(1) In order to exercise state supervision provided in this Act, the Financial Intelligence Unit may apply special state supervision measures provided in §§ 30, 31, 32, 35, 50 and 51 of the Law Enforcement Act on the basis of and in accordance with the procedure provided in the Law Enforcement Act.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
(11) The Consumer Protection and Technical Regulatory Authority and the Transport Board may, for the purpose of exercising state supervision provided in this Act, apply special state supervision measures provided in §§ 30, 31, 32, 49, 50, 51 and 52 of the Law Enforcement Act on the basis of and in accordance with the procedure provided in the Law Enforcement Act.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
(12) For the purpose of exercising state supervision provided in this Act, the Estonian Tax and Customs Board may apply the special state supervision measures specified in §§ 30, 31, 32, 33, 34, 44, 45, 46, 47, 48, 49, 50, 51 and 52 of the Law Enforcement Act on the basis of and in accordance with the procedure provided in the Law Enforcement Act with the specifications provided in the Customs Act and the legislation of the European Union specified in subsection 4 of § 1 of the Customs Act.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
(2) An authority exercising state supervision may, under the conditions provided in § 50 of the Law Enforcement Act, enter the seat and place of business of a person with special obligations, a provider of legal service and a registrar, as well as the building and premises in their possession, and the measure may be applied in the presence of the person subject to the inspection, their representative or employee.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
(3) The results of state supervision are reported by the Financial Intelligence Unit in accordance with the procedure provided in § 68 of the Money Laundering and Terrorist Financing Prevention Act.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
(4) The Estonian Tax and Customs Board may apply the provisions of the Customs Act and of the legislation of the European Union specified in subsection 4 of § 1 of the Customs Act on the transfer of the goods into state ownership, disposal and destruction of the goods in respect of the goods for which an import or export prohibition has been imposed.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
§ 32. Precept of Financial Intelligence Unit
[RT I, 08.03.2022, 1 – entry into force 15.03.2022]
(1) The Financial Intelligence Unit may issue a precept for the appointment of a responsible member of the management board as provided in subsection 2 of § 20 of this Act and a responsible person as provided in subsection 3 of § 20 of this Act for the establishment of the risk mitigation and risk management system of international sanctions in compliance with the requirements provided in § 221 of this Act and for the establishment of rules of procedure and internal control rules that meet the requirements of § 23 of this Act.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
(2) In the case of a suspected violation of a financial sanction or a restriction on public procurement, the Financial Intelligence Unit may, by means of a precept, require the person concerned to provide additional information or suspend the transaction or acts suspected of being in violation, or order the person concerned to take measures necessary for the application of sanctions.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
(3) In case the Financial Intelligence Unit suspects that a transaction is used for financing the disposal of the goods or property banned or restricted by international sanctions or for services related thereto, or for payment for them, or for payment for services banned or restricted by international sanctions, the Financial Intelligence Unit may, by a precept, require the person concerned to provide additional information or suspend the transaction.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
(4) The precept specified in subsections 2 and 3 of this section may be imposed until up to the expiry of the international sanctions on which it is based.
(5) The Financial Intelligence Unit communicates the precept to the person concerned within two working days by notifying the person concerned of the following of the precept:
[RT I, 08.03.2022, 1 – entry into force 15.03.2022]
1) the legal basis;
2) the content and scope;
3) the date of commencement;
4) the basis and procedure for making exceptions;
5) the procedure for contestation.
§ 33. Non-compliance levy for failure to comply with precept
(1) In case a person with special obligations is a credit or financial institution specified in clause 1 or 2 of subsection 1 of § 20 of this Act, the maximum rate of non-compliance levy implemented pursuant to the procedure provided in the Substitutional Performance and Non-Compliance Levies Act in the case of a failure to comply or improper compliance with the precept specified in § 32 of this Act are:
1) in the case of a natural person, up to 5,000 euros for the first occasion and up to 50,000 euros in subsequent cases for the compulsory enforcement of one and the same obligation, but not more than 5,000,000 euros in total;
2) in the case of a legal person, up to 32,000 euros for the first occasion and up to 100,000 euros in subsequent cases for the compulsory enforcement of one and the same obligation, whichever amount is larger, up to 5,000,000 euros or 10% of the total annual turnover of the legal person according to the last available annual accounts approved by the management body.
(2) Where the legal person specified in clause 2 of subsection 2 of this section is a parent undertaking or a subsidiary of such parent undertaking that must prepare consolidated annual accounts, the total annual turnover of the legal person is considered to be either the annual turnover or the total turnover of the income type in the field of breach on which the precept specified in § 32 of this Act is based according to the latest available consolidated annual accounts approved by the highest-level management body of the parent undertaking.
(3) In the case of persons unspecified in subsections 1 and 2 of this section, the upper limit of the non-compliance levy is equal to up to twice the profit earned as a result of the violation, in case such profit can be determined, or up to 1,000,000 euros.
(4) In the case of a failure to comply with the precept issued by the Estonian Tax and Customs Board, the Consumer Protection and Technical Regulatory Authority or the Transport Board, the upper limit of the non-compliance levy is up to 5,000 euros for a natural person and up to 32,000 euros for a legal person.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
§ 34. Exchange of information
(1) In case the Financial Supervision Authority or the supervisory authority specified in subsection 3 of § 11 of this Act or the supervisor referred to in § 30 identifies a situation whose features indicate violation or suspicion of violation of a financial sanction or indicate violation of the requirements of this Act, they immediately notify the Financial Intelligence Unit thereof.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
(2) The Financial Supervision Authority, the Estonian Bar Association and the Estonian Chamber of Notaries are obliged to submit information to the Financial Intelligence Unit by 15 April for the previous calendar year:
1) the number of supervision procedures carried out and the number of persons subject to supervision by types of supervision;
2) the number of offences detected in the course of the supervision and the number of persons subject to misdemeanour proceedings or other measures, and their legal basis, by category of persons.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
(3) [Repealed - RT I, 07.06.2024, 1 - entry into force 17.06.2024]
(4) In order to perform the obligations prescribed in this Act, the Financial Intelligence Unit has the right to exchange information, including receiving and forwarding information containing banking and business secrets, with a foreign authority that performs the functions of a financial intelligence unit or a foreign law enforcement agency pursuant to the procedure provided in § 63 of the Money Laundering and Terrorist Financing Prevention Act.
(5) The Financial Intelligence Unit may notify a local or foreign competent authority, law enforcement, security or supervisory authority, international organisation or institution of the violation of the requirements of this Act or international sanctions, or provide them with data, analyses and assessments recorded in the Financial Intelligence Unit, where it is necessary to achieve the objectives of this Act, to implement or apply international sanctions or to prevent violations related thereto, or to implement or apply a sanction of another country. The transfer of data, including personal data, and of analyses and assessments recorded at the Financial Intelligence Unit is limited to the extent that such transfer does not violate the requirements of the law, an international treaty or international cooperation.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
Chapter 6 Responsibility
§ 35. Failure to notify of identification of subject of financial sanctions or transaction or act violating financial sanctions and of application of financial sanctions and submission of false information
(1) Violation of the obligation to notify the Financial Intelligence Unit of the identification of a subject of financial sanctions or a transaction or act violating financial sanctions provided in subsections 1 and 4 of § 21 of this Act, and violation of the obligation to notify the Financial Intelligence Unit of the application of financial sanctions as well as submission of false information – is punishable by a fine of up to 300 fine units or by detention.
(2) The same act, in case it is committed by a legal person, – is punishable by a fine of up to 400,000 euros.
§ 351. Failure to appoint responsible member of management board and responsible person and failure to notify Financial Intelligence Unit or Financial Supervision Authority of their contact details
(1) Failure to appoint a responsible member of the management board provided in subsection 2 of § 20 of this Act or failure to appoint a responsible person provided in subsection 3 or failure to notify the Financial Intelligence Unit or the Financial Supervision Authority of their contact details –
is punishable by a fine of up to 300 fine units or detention.
(2) The same act, in case it is committed by a legal person, –
is punishable by a fine of up to 400,000 euros.
[RT I, 08.03.2022, 1 – entry into force 15.05.2022]
§ 352. Failure to identify and update risk assessment and risk appetite of international sanction
(1) Failure to identify or update the risk assessment or risk appetite of an international sanction specified in clause 2 of subsection 3 of § 221 of this Act –
is punishable by a fine of up to 300 fine units or detention.
(2) The same act, in case it is committed by a legal person, –
is punishable by a fine of up to 400,000 euros.
[RT I, 08.03.2022, 1 – entry into force 15.05.2022]
§ 353. Failure to apply due diligence measures upon establishing business relationships
(1) Failure to apply the due diligence measures, specified in subsections 1–2 of § 21 of this Act, the purpose of which is to identify the subject of a financial sanction, upon establishing a business relationship, –
is punishable by a fine of up to 300 fine units or detention.
(2) The same act, in case it is committed by a legal person, –
is punishable by a fine of up to 400,000 euros.
[RT I, 08.03.2022, 1 – entry into force 15.05.2022]
§ 354. Failure to apply due diligence measures during business relationship
(1) Failure to apply the due diligence measures, specified in subsections 1–2 of § 21 of this Act, the purpose of which is to identify the subject of a financial sanction, during a business relationship, –
is punishable by a fine of up to 300 fine units or detention.
(2) The same act, in case it is committed by a legal person, –
is punishable by a fine of up to 400,000 euros.
[RT I, 08.03.2022, 1 – entry into force 15.05.2022]
§ 355. Failure to establish and comply with rules of procedure and internal control rules and failure of employee of person with special obligations to implement them
(1) Failure to establish or comply with the rules of procedure or internal control rules specified in § 23 of this Act or failure to apply them by an employee of a person with special obligations –
is punishable by a fine of up to 300 fine units or detention.
(2) The same act, in case it is committed by a legal person, –
is punishable by a fine of up to 400,000 euros.
[RT I, 08.03.2022, 1 – entry into force 15.05.2022]
§ 356. Breach of obligation to obtain additional information and to provide information
(1) Breach of the obligation to obtain additional information or to notify pursuant to § 19 of this Act – is punishable by a fine of up to 300 fine units or detention.
(2) The same act, in case it is committed by a legal person, –
is punishable by a fine of up to 400,000 euros.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
§ 36. Violation of obligation to collect and store data
(1) Violation of the obligation to collect and store data provided in § 22 of this Act –
is punishable by a fine of up to 300 fine units.
(2) The same act, in case it is committed by a legal person, –
is punishable by a fine of up to 400,000 euros.
§ 37. Procedure
The body conducting extra-judicial proceedings of the misdemeanours specified in §§ 35–36 of this Act is the Financial Intelligence Unit or the Financial Supervision Authority.
[RT I, 08.03.2022, 1 – entry into force 15.03.2022]
Chapter 7 Implementing provisions
§ 371. Implementation of subsection 4 of § 131
The Registrar designates the person referred to in subsection 4 of § 131 of this Act within two months of the entry into force of that provision.
[RT I, 07.06.2024, 1 - entry into force 17.06.2024]
§ 38. – § 44. [Omitted from this text.]
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